Problem: A pirate is searching for buried treasure on 6 islands. On each island, there is a $\frac{1}{4}$ chance that the island has buried treasure and no traps, a $\frac{1}{12}$ chance that the island has traps but no treasure, and a $\frac{2}{3}$ chance that the island has neither traps nor treasure. What is the probability that while searching all 6 islands, the pirate will encounter exactly 3 islands with treasure, and none with traps?
There are $\binom{6}{3}=20$ ways to choose 3 islands. For each of these choices, there is a probability of $\left( \frac{1}{4} \right)^3 \left( \frac{2}{3} \right)^3$ that the chosen islands have treasure and the remaining ones have neither treasure nor traps. Therefore, the probability that the pirate encounters exactly 3 islands with treasure and none with traps is $20 \left( \frac{1}{4} \right)^3 \left( \frac{2}{3} \right)^3 = \boxed{\frac{5}{54}}$.